Their next gen handheld is coming in the near future. It will replace the current DS system with "highly detailed graphics" and use a sensor with the ability to "read the movements of people playing."

Also, use Sharp's 3D LCD panel with an analogue stick as well. The system will be unveiled at this year's E3. The Nintendo 3DS will be released before March 2011 in Japan (or late April 2010 which is very unlikely). All Nintendo DS and DSi games will be backwards compatible with the new handheld.

This is a WiiWare game in Japan and might give an idea what the next system will be like.

Can't transfer your DSiWare from your DSi to a new DSi XL if you bought one. Have to rebuy it if you want it on your XL.

XL not even out in the US and they announce the 3DS, which I bet will be Nintendos attempt to tap into the kindle/tablet market as much as being a next gen handheld console. For some reason, Nintendo thinks it is Apple all of a sudden.